The company belongs to Steel Strips Group and the promoters have incresed stake recently by 5% by buying from the open market..
They have also set up a Export House in Spain to increse their exports…

Acrylic Fibre Industry has taken a big U-Turn in current year. Acrylic Fibre is mainly used for clothes and Acrylic Yarn produced from Acrylic Fibre is warm to manufacture Sweaters, Scarves, T-Shirts, Kids Clothes, Mufflers, Jogging Suits, Socks etc. Its other use for Household Segments for manufacturing Carpets, Blankets, Rugs etc.

The Company:
Indian Acrylics Ltd is the largest and most efficient acrylic fiber manufacturer of India and an important player in the global industry with exports to Asia, Europe and the Middle East.
They are producing dry spun acrylic fiber since 1993. Production facility is located at Harkishanpura, District Sangrur, Punjab, India and has a capacity of 42000 mt p.a. and 5400 mt p.a.
IAL earns almost its 70% revenue from exports.
Understanding the Product Category:
Acrylic fiber market globally is Growing. Acrylic fiber market is a subsidiary to clothes | fashion industry and it shows similar trends. Indian market of acrylic fiber too is stagnant for last few years but with higher GDP growth this year compared to last few years hopes are high.
As an industry Acrylic fiber is heavily dependent on crude prices. This is more true for India as Indian company generally imports all raw materiel from crude and its derivative suppliers across the world.
All Indian companies hence experience very fluctuating operating margin depending on the crude prices.
Its been observed that the price difference has an delayed effect of around 3-9 months on the Acrylic fiber companies operating profit margins. Clearly due to raw materiel storage and price commitments made earlier than a crude price fluctuation.
Fundamentals:
Undervalued ? yes. A 550 cr turnover, leader in its segment company is priced only Rs. 19. EPS for full financial year 2015-2016 Rs.1.52 per Share …..Currently trading at 12x
In last two qtrs of 2016-2017 FY company posted EPS 1.32 Per Share. Company is expected to Post EPS of Rs.2.25-2.50 for full financial Year 2016-2017

(in Cr.)

Sep-16

Jun-16

FY15-16
Revenue

130.74

122.23

544.14
Net Profit

6.80

9.75

20.62
EPS

0.50

0.72

1.52

TARGET FOR 2017 Rs.50+

]]>By: Venkyhttp://rakesh-jhunjhunwala.in/fav-nano-nivesh-stock-of-porinju-veliyath-shyam-sekhar-will-give-mega-gains-icici-direct/#comment-9553
Wed, 18 Jan 2017 19:15:37 +0000http://rakesh-jhunjhunwala.in/?p=72254#comment-9553Such huge quantities these big investors have bought and yet the volume of shares traded is so less. So how are these biggies going to sell / offload? Today’s trade was only 1513 shares in BSE.
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